Singapore crypto license

A Singapore crypto license is a regulatory permit issued by the Monetary Authority of Singapore (MAS) for businesses providing cryptocurrency services, such as exchanges, wallets, or token transfers. If your company offers digital payment token (DPT) services, either in or from Singapore, or to overseas clients, you must get a license. This includes exchanges, custodians, wallet providers, and related service platforms. From June 30, 2025, even businesses serving only non-Singapore clients require a license.

Regulated activities include operating a crypto exchange, providing custody or wallet services, facilitating token transfers or sales, and offering digital payment token services. Both local and overseas-focused businesses must be licensed if operating from Singapore. Promotion, transfer, or holding of crypto assets on behalf of clients is also covered.

Key requirements include: having at least one resident director or partner in Singapore, a staffed business address, minimum capital of SGD 250,000, and a clear, lawful business model. You must show that your activities meet compliance standards, including anti-money laundering (AML) and counter-financing of terrorism (CFT) rules. MAS will review your business structure, management, and operational readiness.

You must submit an application to MAS, specifying your business activities and structure. The process includes background checks on shareholders and directors, review of your compliance systems, and explanation of your intended client base. MAS grants licenses only in limited cases, especially for businesses serving only overseas clients. The license is perpetual but requires annual renewal and fee payment. Expect a rigorous review process.

Application fees are S$1,000 for a Standard Payment Institution and S$1,500 for a Major Payment Institution. There are also annual supervisory fees starting at S$5. You must hold a minimum base capital of S$250,000. Additional costs may arise from compliance, audits, and operational needs.

Licensees must follow strict AML and CFT measures, including customer due diligence, transaction monitoring, suspicious activity reporting, and record keeping. You must segregate client assets, ensure technology and cybersecurity standards, and report regularly to MAS. You cannot rely on other crypto providers for client onboarding and must use approved third parties where relevant.

Operating without a valid license after June 30, 2025, is a criminal offense. Penalties include fines up to SGD 250,000 and imprisonment for up to three years. These apply regardless of the company’s size or number of clients. MAS takes enforcement seriously.

Singapore does not have a special tax on crypto. Corporate income tax of 17% applies to net profits of businesses whose main activity is crypto trading or related services. Since 2020, cryptocurrencies are not subject to Goods and Services Tax (GST). Overseas income and dividends may be exempt under certain conditions. Tax exemptions apply for qualifying resident companies.

Firms dealing only with utility or governance tokens, with no payment or investment function, are generally exempt. Employees in support roles without client contact, and technical service providers not handling client funds, also do not need a license. Firms already licensed under other MAS financial regimes may not need a separate crypto license.

Singapore is crypto-friendly with a strong legal and tax framework. However, new licensing for overseas-only businesses or exchanges has become very limited due to tighter MAS controls. Only applicants meeting all regulatory and compliance requirements, with genuine local presence and transparent operations, have a chance to receive approval. The rules aim to prevent money laundering, regulatory arbitrage, and ensure high market standards.